Limiting Limited Liability
University of Amsterdam - Amsterdam Center for Law and Economics (ACLE); Tinbergen Institute
Economics Bulletin, Vol. 11, No. 1, pp. 1-7, 2006
George Mason Law & Economics Research Paper No. 05-32
Amsterdam Center for Law & Economics Working Paper No. 2005-05
Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability cap can improve caretaking.
Number of Pages in PDF File: 12
Keywords: insolvency, judgment proof, liability, bankruptcy, liability cap
JEL Classification: K13, K32, L59
Date posted: September 29, 2005
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